China Fund Securities gets restriction notice as six client accounts suspected of market manipulation
The brokerage is prohibited from dealing with or processing $170 million worth of assets held in six client accounts.
Hong Kong’s Securities and Futures Commission (SFC) today announces that has issued a restriction notice to China Fund Securities Limited (CFSL) over suspected market manipulation linked to several client accounts. The restriction notice was issued in accordance with sections 204 and 205 of the Securities and Futures Ordinance (SFO).
The brokerage is now prohibited from dealing with or processing $170 million worth of assets held in six client accounts, which are related to suspected market manipulation in the shares of Hon Corporation Limited. The alleged misconduct occurred between November 2019 and early December 2019.
The restriction notice prohibits CFSL, without the SFC’s prior written consent, from disposing of or dealing with, assisting, counselling or procuring another person to dispose of or deal with any assets in any way in the client accounts including:
- entering into transactions for any securities; and/or
- processing any withdrawals or transferring of securities and/or cash arising from the disposal of securities; and/or
- disposing of or dealing with any securities or cash on the instructions of any authorized person of the Client Accounts or by any person acting on their behalf; and/or
- assisting another person to dispose of or deal with any relevant property in a specified manner.
The company is also required to notify the regulator if it receives any of these instructions.
The SFC’s investigation into the matter is continuing.
